Data protection company DQM Group commissioned research which examined the UK public's different levels of trust in a variety of organisations in the private and public sector. The results were then compared to fieldwork conducted by communications company Pitney Bowes in 2008.
The research found that even the most trusted institutions, GPs and police forces, have experienced a decline.
Despite the economic downturn commercial organisations did not fare too badly, with around half the country happy about data security standards at their bank and building society, two fifths of the population trusting travel companies and credit card issuers, and around a third comfortable with data security at hotels and insurance firms.
By far the worst performers were local authorities (23%), central government departments (19%) and social networking sites (15%).
The results show that twice as many people trust their credit card provider than they do government departments.
Adrian Gregory, managing director of DQM Group, said: "Unless widespread improvement in data security standards takes place in the next few years, across both private and public sectors, then commercial organisations will stand to lose custom, and government will miss efficiency targets, all because the public is increasingly less willing to risk handing over their personal details."